UPDATE 1-EU court reduces Nintendo fine in collusion case

* EU court cuts Nintendo fine in collusion case

* Court upholds Itochu’s fine

* Nintendo says reserves the right to appeal (Adds details, background, Nintendo statement)

LUXEMBOURG, April 30 (Reuters) - A top European court cut on Thursday a fine imposed on Nintendo 7974.OS for colluding with distributors to prevent consumers getting products cheaply, saying the Japanese games-maker had cooperated in the case.

The European Court of First Instance cut the size of the fine to 119.24 million euros ($158 million) from 149.128 million, and said in a news release the company had produced “relevant documents” during the procedure.

The court, Europe's second highest, also reduced to 500,000 euros from 1 million a fine on distributor CD-Contact Data, but upheld the 4.5 million euros fine on Japanese trading company Itochu Corp 8001.T for their respective roles.

Nintendo said in a statement that it welcomed the court’s decision to reduce the fine.

“Nintendo intends to study the Court of First Instance’s ruling in detail, but reserves the right to take its appeal against the quantum of this fine to the European Court of Justice,” the company said.

Nintendo said in a statement the case centred around infringements of rules relating to importing but did not involve an illegal cartel.

The European Commission imposed a total fine of 167.8 million euros ($221.4 million) on Japan’s Nintendo and seven distributors in Europe in 2002 for colluding to prevent exports to high-priced countries from low-priced countries.

The Commission said consumers had the right to buy Nintendo products at the lowest price the market could offer in any European Union country, especially when prices differed widely, with Britain up to 65 percent cheaper than Germany and the Netherlands.

Reporting by Michele Sinner; writing by Bate Felix; editing by Mark John